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Gold Sets New Absolute Record as US Can’t Raise Debt Ceiling

July 29, 2011 at 17:33 by Andriy Moraru

Gold set its new record maximum level today (for the eighth time total this month), as the US Congress seems to be unable to raise the debt ceiling before the critical date of August 2.

The seemingly unavoidable state of technical default is benefiting the precious metal prices, resulting in a fourth bullish day this week. If the limit of $14.3 trillion isn’t lifted during the next 4 days (including the weekend), the gold might surge to extremely high levels.

Following bearish June, the current month is ending quite positively for gold. The commodity is currently demonstrating its third-best monthly gain ever. The decline of the American stock market is also adding attractiveness to gold as not only safe, but also quite lucrative, asset.

The brokers operating in gold market say that the demand from the regular investors is still very high. Common people buy gold as an alternative to faltering dollar-dependent securities.

Spot gold rose from $1,615.64 to $1,627.05 or 0.7 percent as of 17:31 GMT today. The metal increased by 8.5 percent this month.

If you have any questions and comments on the commodities today, use the form below to reply.

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